Rest in Peace, Patrick Sand
How High Credit Card Interest Rates Affect Your Mortgage Qualification
A while back I received a notice from a local department store informing me that my credit card interest rate was going up — from 24% to 31%. This was right after the Fed had lowered the funds rate. My credit is excellent. When I called to ask about it, I was told the increase was across the board and there was nothing they could do. My only option, they said, was to stop using the card. [Read more…]
Helping Your Adult Child Buy a Home
Buying a home for your child is a major financial and emotional decision. It’s a generous gesture that can offer security, stability and help create wealth, but it’s essential to carefully weigh the pros and cons before making this commitment. Here are some important factors to consider: [Read more…]
Watch Out for Property Taxes when Buying a New Home
A few days ago, I was reviewing a homeowner’s Closing Disclosure from their purchase that closed with another lender. This couple had come to me when they were purchasing the home, however the builder was offering extra incentives for buyers for working with the builder’s lender. I was surprised to see that property taxes were very under-estimated.
When someone is buying a home that has recently been built, it’s very likely that the home has not yet been valued by the county’s tax accessor. The only value that has been determined is for the lot. However, once you purchase the home, even though the home has not yet been assessed, you will owe taxes on both the land and the home. The “missing taxes” are called “omit taxes”. [Read more…]
Understanding the Numbers Behind a Bidding War Offer
Editor’s note: This post was originally published in July 2024. The example scenario below uses appreciation and payment figures that were accurate at that time — the underlying math still holds, but if you want current numbers for your own situation, I’m happy to run a personalized analysis.
In my post How to Improve Your Odds of Getting YOUR Offer Accepted, I touched on understanding the numbers behind bidding wars, low appraisals, and commissions. It’s worth exploring in more detail — you may be surprised that bidding above list price doesn’t affect your payment as much as you’d think, since the added cost is amortized over the life of a typical 30-year mortgage. [Read more…]
